While the Indian economy is forging ahead and household incomes too are rising, quality healthcare is increasingly an area of concern for many people. On the one hand, there has been a drastic rise in lifestyle diseases in cities and, on the other, there has been a rising awareness about health and health insurance. These have fuelled the growth of the healthcare industry.

The size of the Indian hospital industry is presently estimated at Rs.2.7 trillion. This industry is growing at an annual rate of 13%. The private sector accounts for nearly 86% of the healthcare market while the public sector accounts for the rest. With over a 350 million strong middle class demanding quality health care, the Indian hospital industry is poised to grow at an even faster pace. The number of medical tourists visiting India is also increasing every year.

Corporate hospitals, which came into existence with Apollo Hospitals in the 1980s, are now being set up in almost every Indian city. Corporate groups such as Max, Escorts, and Wockhardt have aggressive expansion plans. Furthermore, corporates such as the Tata Group, Larsen & Toubro, and Reliance have established hospitals for their employees. With the entry of corporate players into the Indian hospital industry, there has been an improvement in the infrastructure and the quality of services. Increasing lifestyle diseases and the rising demand for quality healthcare services have led to the emergence of specialty clinics.

There is, however, still a gap between demand for and supply of hospital services in India, particularly in the rural areas. The figure for beds per thousand people in India is just one third of the comparable figure in China and half that of Malaysia. According to a WHO report, India needs to add 80,000 hospital beds each year for the next five years to meet the demands of its growing population. Public health expenditure in India is low when compared with the developed countries. There is also low penetration of health insurance. The recent government initiative focuses on improving healthcare access, boosting private sector participation, and upgrading technology.

The Indian hospital industry has the potential to become a global hub for healthcare services. An increasing number of global players are focusing on the Indian market. The industry is expected to grow rapidly over the next decade to reach Rs.4.9 trillion by 2012.

Managers in the Hospital and Healthcare industry would have to be well-versed in developing the appropriate pricing, branding, and promotional strategies. They would be required to understand the service delivery process and suggest improvements. They would have to have a thorough knowledge of all costs and work towards improving profitability.

A Masters in Hospital Administration gives students an exposure to this vibrant and growing sector and introduces them to its opportunities and challenges.